FINTECH player i-Serve Online Mall Sdn Bhd has requested Bank Negara Malaysia (BNM) to clarify what it described as “vague and factually incorrect” statements in a media release issued by the central bank on Monday (Nov 15) with regard to joint enforcement action on the company.
According to The Edge, it sighted the request via a letter from the company’s lawyers Chetan Jethwani and Co.
i-Serve contended that the statement made by BNM may mislead the public regarding the nature of the enforcement action taken against the company and its affiliates.
The company added that the media release strongly suggested and gave the impression that i-Service and its affiliates are guilty of committing serious financial crimes under the Financial Services Act 2013 (FSA) and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
i-Serve further disputed that “there was no such cash seized” despite BNM having claimed in its media statement that the raid on 22 premises linked to i-Serve and its related affiliates in Kuala Lumpur and Selangor has led to the freezing of 45 bank accounts in seven banks and seizing of cash totalling RM118.7 mil.
In essence, i-Serve noted that the media release had severely damaged the company’s commercial reputation as well as that of its affiliates, as well as to its immediate affiliate known as i-Serve Gateway Sdn Bhd (ISG) – a licensed payment gateway company – which is allegedly not part of the investigation.
“We are instructed that ISG is not the subject matter of the investigation and no freezing orders or searches were issued to it.
“We have been instructed that by the reason of the press release and the article published by The Vibes, ISG’s bankers have started terminating their banking relationships with ISG thereby putting the business of ISG at immediate risk of collapse,” The Edge cited the law firm which represented i-Serve as saying.
i-Serve thus urged BNM to clarify its previous statements, noting that as with all criminal investigations, i-Serve and its affiliates are presumed to be innocent until found guilty by a court of law. – Nov 19, 2021
